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Additional Information
Market: NYSE
Sector: Clothing & Footwear
EPIC: PVH
Latest Price: 80.70  (2.00% Ascending)
52-week High: 82.94
52-week Low: 51.47
Market Cap: 5,451.70M
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Phillips-Van Heusen Corporation
www.pvh.com

Phillips-Van Heusen Corporation is one of the world's largest apparel companies. It owns and markets the Calvin Klein brand worldwide and markets a variety of goods under its own brands.

Full Phillips-Van Heusen Corporation profile here
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Calvin Klein owner buys Tommy Hilfiger for US$3 billion from Apax Partners

15th Mar 2010, 12:38 pm by Ian Mclelland
Calvin Klein owner buys Tommy Hilfiger for US$3 billion from Apax Partners

Phillips-Van Heusen Corporation (NYSE: PVH), which owns and markets a number of leading apparels, including Calvin Klein, has entered into an agreement with private equity group Apax Partners to acquire Tommy Hilfiger B.V. for US$3 billion (€2.2 billion). Phillips-Van Heusen will also assume €100 million in liabilities as part of the deal.


The New York listed shirt and neckwear company is paying €1.924 billion in cash and issuing €276 million in PVH common stock (approximately 8.7 million shares) to fund the transaction.


“The combination will create one of the world's largest and most profitable apparel companies; a global business with combined revenue of approximately $4.6 billion,” PVH stated this morning.


PVH expects the transaction to be immediately earnings enhancing and is looking to realize approximately US$40 million in annualized cost synergies.


"This is a unique opportunity to bring together two premier companies, each with iconic brands, which will deliver enhanced opportunities for our stockholders, business partners, customers and employees as we leverage a combined global platform in the years ahead," said Emanuel Chirico, Chairman and Chief Executive Officer of PVH.

"During almost four years as a private company under the leadership of Fred Gehring and his team, Tommy Hilfiger has continued to gain momentum in Europe and Asia, while successfully rebuilding its business in North America, producing impressive overall performance, and generating strong profitability and free cash flow even during the recession."


Upon the closing of the transaction, Tommy Hilfiger will remain in his role as Principal Designer and Visionary for the Tommy Hilfiger brand. Fred Gehring will continue as CEO of Tommy Hilfiger, will assume the added responsibility as CEO of PVH's international operations, and will join the PVH Board of Directors.


Tommy Hilfiger's revenue for its fiscal year ending March 31, 2010 is expected to be approximately $2.25 billion, with earnings before interest and taxes of approximately $280 million, excluding $40 million of impairment charges, and depreciation and amortization of approximately $100 million.

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